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A SURVEY REPORT

ON

“AWARENESS AND PERCEPTION OF


MUTUAL FUND”

BY

AJAY SINGH RATTHORE (3003)


MBA II
JODHPUR INSTITUE OF MANAGEMENT
JODHPUR.

ORGANISATION
TABLE OF CONTENTS
Acknowledgement………………………………………………….

Abstract…………………………………………………………….

CHAPTER I……………………………………………………….

Objective

Limitation

Methodology

CHAPTER II………………………………………………………

Industry profile

History and organization of Mutual Fund in India

Mutual Fund companies in India

Recent trend in Mutual Fund Industry

CHAPTER III……………………………………………………..

Introduction about Mutual Funds

Mutual fund : why?

Mutual fund :what is it ?

Mutual fund :what is it made of?

Different type of MF

CHAPTER IV…………………………………………………….

Company profile
Introduction

Product and service of reliance MF

Why Reliance Mutual Fund ?

CHAPTER V……………………………………………………..

SWOT Analysis

CHAPTER VI…………………………………………………….

Analysis and interpretation of Mutual of data

CHAPTER VI………………………………………………… ..

Findings

CHAPTER VIII…………………………………………………

Recommendation

CHAPTER IX…………………………………………………..

Conclusion

CHAPTER X…………………………………………. ……….

Objectives

Limitation

CHAPTER XI……………………………………………………..

Questionnaire

Bibliography…………………………………………………….
ACKNOWLEDGMENT

I am grateful to all those who have helped me directly or indirectly in


company this project . I firmly believe that there is always scope for
improvement and accordingly. I shall took forward to received
suggestions.

First of all I would like to thank God for his grace .I am


further thankful to Reliance Mutual Fund ,Jodhpur .which give me
chance to held my project study upon of it

. I exuberantly thankful to Mr. Pawan Joshi (Relationship


manager) I further want to thank to Mr. Arvind Kuri who guide me and
help taking right direction in field work. I further welcome inspiration and
suggestion to make it best.

I sincerely believe that the road of improvement is


never ending. Hence I shall forward to end gratefully acknowledge all
suggestions received. I am highly grateful to Dr. Abha Purohit faculty of
JIM, Jodhpur for acting as a Guiding star for me. Who helped me in their
own way to complete this interim report. my sincere apologies is who
helped me in a variety of wage and Whose name could not be individually
acknowledged.

AJAY SINGH RATHORE

(3003)

ABSTRACT
Probably nothing can define the spirit of being ‘mutual’ better than this verse.
And who else to understand it better than the mutual fund industry. It seems
the mutual fund industry in India is slowly but surely beginning to recognize
this aspect for the better. Today, there is greater emphasis on the role of the
industry, the regulator. Securities and Exchange board of India (SEBI) and
industry body, Association of Mutual Funds in India (AMFI) on creating
awareness among investors and improving investor services. In fact, the
efforts of both the regulator as well as AMFI are laudable for promoting the
cause of investor education religiously. The ‘one product caters to all needs’
approach has given way to offering products which suite the specific needs of
investors ala product innovation. There is also increased emphasis on
convenience in terms of comfortable transaction services to investors by using
delivery or distribution platforms like the Internet, ATMs, Corporate brokers,
etc. Infect, distribution innovation has come to play a key role in the growth
of the industry. Industry players are using different distribution channels to
increase their market penetration. However, a significant change that is being
witnessed now is the swift response on part of the regulator to safeguard
investors’ interests. Thanks to the collective efforts of SEBI and AMFI, and
also the industry players, the domestic mutual fund industry has been
untouched by the depression of late trading, inside trading etc., which affected
the US Mutual Fund industry in recent times. However, that is not to say that
the Indian Mutual Fund Industry is completely problem-free. Issues such as
low penetration in both semi

urban as well rural areas (mutual funds have so far been largely and urban
affair that too in big cities), poor investor awareness and exploitation of this
fact by industry players, as demonstrated by the mutual fund IPO commotion
and excessive focus on corporate and other big pocket investors at the
expense of retail investors are some of the issues that industry needs to
address.
With the increase in domestic saving s and
improvement in deployment of investment through markets, the need and
scope for mutual fund operation has increased tremendously. Mutual funds are
not only best suited for the purpose but also are capable of meeting this
challenge effectively. Professionals who manage mutual funds are considered
to have a better knowledge of market behavior. Another important reason is
that the dividends and capital gains are reinvested automatically in mutual
funds and, hence, are not frittered away. Mutual funds also create awareness
among the urban and rural middle-class about the benefits of investments in
capital markets through profitable and safe avenues, and are able to gather a
large amount of the surplus funds available with this section.
Within short span of time mutual
fund operation has become an integral part of the Indian financial scene and is
balanced for rapid growth in the near future. The mutual fund industry has
been remarkably flexible over the last decade in spite of varying economic
conditions, capital market scams, and increasing competition. Today,
numerous schemes, tailored to meet the diversified needs of savers, are being
offered by many institutions. In this project an attempt has been made to
evaluate the awareness and perception of mutual fund on different parameter

CHAPTER I
Objectives
Limitations

Methodology

OBJECTIVES

The main aim of undertaking this study is to accomplish the following


objective:

• Conducting a market survey and understanding the customer


perception.

• Analyzing the market survey and thereby finding out the investment
pattern of the customer.

• Proper understanding and evaluation of mutual funds as an investment


option

• Analysis customer awareness about Mutual fund.

• Proper understanding and analysis of the perspective investor about this


financial product .

LIMITATIONS
Though the present study aimed to achieve the above-
mentioned objectives in full earnest and accuracy, it was in
a weak position due to certain limitations. Some of the
limitations of this study may be summarized as follows :

• Getting accurate responses from the respondents due to


their inherent problems was difficult. They were partial,
and refused to cooperate.

• Very few people have knowledge about Mutual funds and the other
products of the Mutual Funds .

• Locating the target respondents was very time


consuming.

• Sample size was limited due to the limited period of


days allocated for the survey.

• The selection of respondents to cover the various strata of the society


was tedious and time consuming.

METHODOLOGY
The objective of the present study can be accomplished by conducting a
systematic market survey. Market Research is a systematic design,
collection, analysis and reporting of data and finding that are relevant to
different market situation facing by the company. The marketing research
process that will be adopted in the present study consist of the following
stages:

1. Defining the problem and research objective:

The research objective state that what information is needed to solve the
problem. Here the objective of other research is awareness and perception
of Mutual fund as an Investment option and what are the benefits that the
investor will get by investing in Mutual funds.

2. Developing research plan:

Once the problem is defined, the next step is to prepare a plan for getting
the information needed for the research. The present study will adopt
exploratory approach where in there is a need to gather a large amount of
information before making a conclusion if required. The descriptive and
casual approaches may also be used.

3. Collection and Sources of Data:

To collect the data, relevant information is necessary as regards to the


project; as a result data was collected by using two ways:

• Primary Data

• Secondary Data.

Primary Data:

In this the information is being possessed with first hand information,


which is new and fresh.

The tools used by us for the primary data are:


• Questionnaire

• Face-to-Face Interview

• Observation

Secondary data:

The information that is received with the help of Journals, Magazines,


Financial reports or which is already present with the company.

• References used from management books

• Gathered information through World Wide Web (www).

• Support and knowledge provided by Faculty and Company guide.

4. Sampling Plan:

• Sampling unit: The customers will be stratified and segmented


according to their age, income, cultural background, gender, education,
etc(Demography).

• Sampling size: A survey was conducted for one hundred respondents.

5. Analyze the collected information:

This involves converting raw material in to useful information. It involves


tabulation of data and using statically measures on them for developing
frequency distribution and calculating the averages and dispersions.

6. Report research findings:

This phase will mark the culmination of the marketing research efforts.
The report with the research finding is a formal written document.
CHAPTER II
Industry Profile

HISTORY AND ORGANIZATION OF


MUTUAL FUNDS IN INDIA
The mutual fund industry in India started in 1963 with the formation of Unit Trust
of India, at the initiative of the Government of India and Reserve Bank the. The
history of mutual funds in India can be broadly divided into four distinct phases

First Phase – 1964-87:

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was
set up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked
from the RBI and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in place of RBI. The first scheme launched by
UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets
under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds):

1987 marked the entry of non- UTI, public sector mutual funds set up by public
sector banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank
of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its
mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.

At the end of 1993, the mutual fund industry had assets under management of
Rs.47,004 crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds):


With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund families.
Also, 1993 was the year in which the first Mutual Fund Regulations came into
being, under which all mutual funds, except UTI were to be registered and

governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton)
was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more


comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several mergers
and acquisitions. As at the end of January 2003, there were 33 mutual funds with
total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of
assets under management was way ahead of other mutual funds.

Fourth Phase – since February 2003:

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust of India with assets under management of Rs.29,835 crores as at the end of
January 2003, representing broadly, the assets of US 64 scheme, assured return and
certain other schemes. The Specified Undertaking of Unit Trust of India,
functioning under an administrator and under the rules framed by Government of
India and does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It
is registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000
crores of assets under management and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking
place among different private sector funds, the mutual fund industry has entered its
current phase of consolidation and growth. As at the end of September, 2004, there
were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.
The graph indicates the growth of assets over the years.

Graph 1: The graph showing Growth in assets under management through


Mutual Funds

RECENT TRENDS IN MUTUAL FUND


INDUSTRY

The most important trend in the mutual fund industry is the aggressive
expansion of the foreign owned mutual fund companies and the decline of
the companies floated by nationalized banks and smaller private sector
players.

Many nationalized banks got into the mutual fund business in the early
nineties and got off to a good start due to the stock market boom
prevailing then. These banks did not really understand the mutual fund
business and they just viewed it as another kind of banking activity. Few
hired specialized staff and generally chose to transfer staff from the parent
organizations. The performance of most of the schemes floated by these
funds was not good. Some schemes had offered guaranteed returns and
their parent organizations had to safekeeping out these AMCs by paying
large amounts of money as the difference between the guaranteed and
actual returns. The service levels were also very bad. Most of these AMCs
have not been able to retain staff, float new schemes etc. and it is doubtful
whether, barring a few exceptions, they have serious plans of continuing
the activity in a major way.
The experience of some of the AMCs floated by private sector Indian companies was
also very similar. They quickly realized that the AMC business is a business, which
makes money in the long term and requires deep-pocketed support in the intermediate
years. Some have sold out to foreign owned companies, some have merged with others
and there is general restructuring going on The foreign owned companies have deep
pockets and have come in here with the expectation of a long pull. They can be
credited with introducing many new practices such as new product innovation, sharp
improvement in service standards and disclosure, usage of technology, broker
education and support etc. In fact, they have forced the industry to upgrade itself and
service levels of organizations like UTI have improved dramatically in the last few
years in response to the competition provided by these.

MUTUAL FUND COMPANIES IN INDIA


List of Some of the AMCs Operating in India

Name of the AMC Nature of


ownership

Alliance Capital Asset Management (I) Private Private Foreign


Limited

Birla Sun Life Asset Management Company Limited Private Indian

Bank of Baroda Asset Management Company Banks


Limited

Bank of India Asset Management Company Limited Banks

Canbank Investment Management Services Limited Banks

Cholamandalam Cazenove Asset Management Private Foreign


Company Limited

Dundee Asset Management Company Limited Private Foreign

DSP Merrill Lynch Asset Management Company Private Foreign


Limited

Escorts Asset Management Limited Private Indian

First India Asset Management Limited Private Indian

GIC Asset Management Company Limited Institutions

IDBI Investment Management Company Limited Institutions

Indfund Management Limited Banks

ING Investment Asset Management Company Private Foreign


Private Limited

J M Capital Management Limited Private Indian

Jardine Fleming (I) Asset Management Limited Private Foreign

Kotak Mahindra Asset Management Company Private Indian


Limited
Kothari Pioneer Asset Management Company Private Indian
Limited

Jeevan Bima Sahayog Asset Management Company Institutions


Limited

Morgan Stanley Asset Management Company Private Foreign


Private Limited

Punjab National Bank Asset Management Company Banks


Limited

Reliance Capital Asset Management Company Private Indian


Limited

State Bank of India Funds Management Limited Banks

Shriram Asset Management Company Limited Private Indian

Sun F and C Asset Management (I) Private Limited Private Foreign

Sundaram Newton Asset Management Company Private Foreign


Limited

Tata Asset Management Company Limited Private Indian

Credit Capital Asset Management Company Limited Private Indian

Templeton Asset Management (India) Private Private Foreign


Limited

Unit Trust of India Institutions

Zurich Asset Management Company (I) Limited Private Foreign

The sponsorers of Association of Mutual Funds in India


Bank Sponsored :
• SBI Fund Management Ltd.
• BOB Asset Management Co. Ltd.
• Canbank Investment Management Services Ltd.
• UTI Asset Management Company Pvt. Ltd.

Institutions:
• GIC Asset Management Co. Ltd.
• Jeevan Bima Sahayog Asset Management Co. Ltd.
• Private Sector

Indian:
• BenchMark Asset Management Co. Pvt. Ltd.
• Cholamandalam Asset Management Co. Ltd.
• Credit Capital Asset Management Co. Ltd.
• Escorts Asset Management Ltd.
• JM Financial Mutual Fund
• Kotak Mahindra Asset Management Co. Ltd.
• Reliance Capital Asset Management Ltd.
• Sahara Asset Management Co. Pvt. Ltd
• Sundaram Asset Management Company Ltd.
• Tata Asset Management Private Ltd.

Predominantly India Joint Ventures:


• Birla Sun Life Asset Management Co. Ltd.
• DSP Merrill Lynch Fund Managers Limited
• HDFC Asset Management Company Ltd

Predominantly Foreign Joint Ventures:


• ABN AMRO Asset Management (I) Ltd.
• Alliance Capital Asset Management (India) Pvt. Ltd.
• Deutsche Asset Management (India) Pvt. Ltd.
• Fidelity Fund Management Private Limited
• Franklin Templeton Asset Mgmt. (India) Pvt. Ltd.
• HSBC Asset Management (India) Private Ltd.
• ING Investment Management (India) Pvt. Ltd.
• Morgan Stanley Investment Management Pvt. Ltd.
• Principal Asset Management Co. Pvt. Ltd.
• Prudential ICICI Asset Management Co. Ltd.
• Standard Chartered Asset Mgmt Co. Pvt. Ltd.

Association of Mutual Funds in India Publications


AMFI publishes mainly two types of bulletin. One is on the monthly basis
and the other is quarterly. These publications are of great support for the
investors to get intimation of the know-how of their parked money.
CHAPTER-III

Introduction about Mutual Fund

Mutual Funds :Why ?

• Professional management
• Diversification and Lowered risks
• Low costs
• Liquidity
• Transparency
• Flexibility
• Choice of schemes
• Tax benefits
• regulation

The advantages of investing in a Mutual Fund are:


• Professional Management
Mutual funds hire full-time, high-level investment professionals. Funds
can afford to do so as they manage large pools of money. The managers
have real-time access to crucial market information and are able to
execute trades on the largest and most cost-effective scale.
• Diversification
Mutual funds invest in a broad range of securities. This limits investment
risk by reducing the effect of a possible decline in the value of any one
security. Mutual fund unit-holders can benefit from diversification
techniques usually available only to investors wealthy enough to buy
significant positions in a wide variety of securities.
• Low Costs
A mutual fund let's you participate in a diversified portfolio for as little as
Rs.5,000/-, and sometimes less. And with a no-load fund, you pay little or
no sales charges to own them.

• Liquidity
In open-ended schemes, you can get your money back promptly at net
asset value related prices from the mutual fund itself.

• Transparency
You get regular information on the value of your investment in addition to
disclosure on the specific investments made by the mutual fund scheme.

• Convenience and Flexibility


You own just one security rather than many; yet enjoy the benefits of a
diversified portfolio and a wide range of services. Fund managers decide
what securities to trade collect the interest payments and see that your
dividends on portfolio securities are received and your rights exercised. It
also uses the services of a high quality custodian and registrar in order to
make sure that your convenience remains at the top of our mind.

• Personal Service
One call puts you in touch with a specialist who can provide you with
information you can use to make your own investment choices. They will
provide you personal assistance in buying and selling your fund units,
provide fund information and answer questions about your account status.
Our Customer service centers are at your service and our Marketing team
would be eager to hear your comments on our schemes.
Mutual Funds : What is it ?

Mutual Fund Operation Flow Chart

A Mutual Fund is a trust that pools the savings of a number of investors who share
a common financial goal. The money thus collected is then invested in capital
market instruments such as shares, debentures and other securities. The income
earned through these investments and the capital appreciation realized are shared
by its unit holders in proportion to the number of units owned by them. Thus a
Mutual Fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of securities
at a relatively low cost. The flow chart below describes broadly the working of a
mutual fund:

Mutual Fund : What is it made of ?


Investors:
Every investor, given his financial position and personal disposition, has a certain
tendency preference to take risk (risk profile / risk appetite). The hypothesis is that by
taking an incremental risk (of losing capital, wholly or partly), it would be possible for
the investor to earn an incremental return.
But assuming risk without regularly monitoring it is foolhardy. Therefore, it would be
prudent for investors who take a risk to be able to manage this risk.

MF is a solution for investors who lack the time, or the inclination or the skills to
actively manage their investment risk in individual securities. They can delegate this
role to the MF, while retaining the right and the obligation to monitor their investments
in the scheme (which, in turn, invests in individual securities).

In the absence of a MF option, the moneys of such “passive” these investors would lie
either in bank deposits or other “safe” investment options, thus depriving the investors
of the possibility of earning a better return.

Investing through a MF would make economic sense for an investor if his investment,
over the medium to long term, fetches a return (net of all costs and expenses) that is
higher than what she would otherwise have earned by investing directly.

Because the goal of investing is to accumulate real wealth – an enhanced ability to pay
for goods and services – the ultimate focus of the long-term investor must be on real,
not nominal, returns.

Trustees:
Trustees are the people within the mutual fund organization, who are responsible to
ensure for ensuring that investors’ interests are properly taken care of In return for their
services, they are paid trustee fees, which is normally charged to the scheme.

Asset Management Company (AMC):


AMCs manage the investment portfolios of schemes. An AMC’s Income for an AMC
comes through from the management fees that are it charges to the schemes. The
management fee is calculated as a percentage of net assets managed. Some countries
provide for performance based management fees as well.

Distributors
Distributors earn a commission for bringing investors into the schemes of a MF. This
commission is an expense for the scheme,

although there are occasions when the AMC chooses to bear the cost, wholly or partly.
Depending on the financial and physical resources at their disposal, they distributors
could be:
• Tier 1 distributors (having an owned or franchised network reaching out to
investors all across the country); or
• Tier 2 distributors (regional players with some reach within their region); or
• Tier 3 distributors (marginal players).
It is paradoxical that distributors earn a commission from the AMC, but are expected to
safeguard the financial health of investors from whom they do not earn a fee.
It is almost like a doctor earning a commission from the pharmaceutical company, but
expected to safeguard the physical health of the patient who does not pay him anything.

Registrars
The investor’s’ holding in various schemes is typically tracked by the scheme’s
Registrar and Transfer agent (R&T). Some AMCs prefer to handle this role in-house.
The registrar / AMC maintains an account of the investor’s’ investments in and dis-
investment from the scheme. Requests to invest more money into a scheme, or to
recover moneys against existing investments in the scheme are processed by the R&T.

Custodian / Depository
The custodian maintains custody of the securities in which the scheme invests (as
distinct from the registrar who tracks the

investment by investors in the scheme). This ensures an ongoing independent record of


the investments of the scheme. The custodian also follows up on various corporate
actions, such as rights, bonus and dividends declared by invested companies.
In a situation where securities are increasingly being dematerialized, the role of the
depository for such independent record of investments is increasing growing.

Different types of Mutual Funds :


Wide variety of Mutual Fund Schemes exists to cater to the needs such as
financial position, risk tolerance and return expectations etc. The table
below gives an overview into the existing types of schemes in the
Industry.

TYPES OF MUTUAL FUND SCHEMES


By Structure:

Open - Ended Schemes : An open-end fund is one that is available for


subscription all through the year. These do not have a fixed maturity.
Investors can conveniently buy and sell units at Net Asset Value ("NAV")
related prices. The key feature of open-end schemes is liquidity.

Close - Ended Schemes : A closed-end fund has a stipulated maturity


period which generally ranging from 3 to 15 years. The fund is open for
subscription only during a specified period. Investors can invest in the
scheme at the time of the initial public issue and

thereafter they can buy or sell the units of the scheme on the stock
exchanges where they are listed. In order to provide an exit route to the
investors, some close-ended funds give an option of selling back the units
to the Mutual Fund through periodic repurchase at NAV related prices.
SEBI Regulations stipulate that at least one of the two exit routes is
provided to the investor.

Interval Schemes: Interval funds combine the features of open-ended


and close-ended schemes. They are open for sale or redemption during
pre-determined intervals at NAV related prices.

By Investment Objective :

Growth Schemes: The aim of growth funds is to provide capital


appreciation over the medium to long- term. Such schemes normally
invest a majority of their corpus in equities. It has been proven that
returns from stocks, have outperformed most other kind of investments
held over the long term. Growth schemes are ideal for investors having a
long-term outlook seeking growth over a period of time.

Income Schemes : The aim of income funds is to provide regular and


steady income to investors. Such schemes generally invest in fixed
income securities such as bonds, corporate debentures and Government
securities. Income Funds are ideal for capital stability and regular income.

Balanced Schemes : The aim of balanced funds is to provide both


growth and regular income. Such schemes periodically distribute a part of
their earning and invest both in equities and fixed income

securities in the proportion indicated in their offer documents. In a rising


stock market, the NAV of these schemes may not normally keep pace, or
fall equally when the market falls. These are ideal for investors looking
for a combination of income and moderate growth.
Money Market Schemes: The aim of money market funds is to provide
easy liquidity, preservation of capital and moderate income. These
schemes generally invest in safer short-term instruments such as treasury
bills, certificates of deposit, commercial paper and inter-bank call money.
Returns on these schemes may fluctuate depending upon the interest rates
prevailing in the market. These are ideal for Corporate and individual
investors as a means to park their surplus funds for short periods.

Load Funds: A Load Fund is one that charges a commission for entry or
exit. That is, each time you buy or sell units in the fund, a commission
will be payable. Typically entry and exit loads range from 1% to 2%. It
could be worth paying the load, if the fund has a good performance
history.

No-Load Funds: A No-Load Fund is one that does not charge a


commission for entry or exit. That is, no commission is payable on
purchase or sale of units in the fund. The advantage of a no load fund is
that the entire corpus is put to work.

Other Schemes :

Tax Saving Schemes: These schemes offer tax rebates to the investors
under specific provisions of the Indian Income Tax laws as the
Government offers tax incentives for investment in specified avenues.
Investments made in Equity Linked Savings Schemes (ELSS) and
Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act,
1961. The Act also provides opportunities to investors to save capital
gains u/s 54EA and 54EB by investing in Mutual Funds, provided the
capital asset has been sold prior to April 1, 2000 and the amount is
invested before September 30, 2000.
Special Schemes :

Industry Specific Schemes : Industry Specific Schemes invest only in the


industries specified in the offer document. The investment of these funds
is limited to specific industries like InfoTech, FMCG, and
Pharmaceuticals etc.

Index Schemes : Index Funds attempt to replicate the performance of a


particular index such as the BSE Sensex or the NSE 50

Sector Specific Schemes: Sectoral Funds are those, which invest


exclusively in a specified industry or a group of industries or various
segments such as 'A' Group shares or initial public offerings

CHAPTER IV
COMPANY PROFILE
Reliance Mutual Fund (RMF) has been established as a trust under the
Indian Trusts Act, 1882 with Reliance Capital Limited (RCL), as the
Settlor/Sponsor.

OUR FOUNDER

Dhirubhai H. Ambani

Founder Chairman,
Reliance Industries Limited, India
December 28, 1932 - July 6, 2002

Major Group Companies: Reliance


Industries Limited, India's largest private
sector company.

Birthplace: Chorwad, village in Saurashtra (Gujarat), India


Father's Name: Hirachand Govardhandas Ambani
Mother's Name: Jamunaben Hirachand Ambani

INTRODUCTION
About Reliance Capital Asset Management Ltd:
Reliance Capital Asset Management Limited (RCAM), a company registered under the
Companies Act, 1956 was appointed to act as the Investment Manager of Reliance Mutual
Fund.
Reliance Capital Asset Management Limited is a wholly
owned subsidiary of Reliance Capital Limited, the sponsor. The entire paid-up capital
(100%) of Reliance Capital Asset Management Limited is held by Reliance Capital
Limited.
Reliance Capital Asset Management Limited was
approved as the Asset Management Company for the Mutual Fund by SEBI vide their letter
no IIMARP/1264/95 dated June 30, 1995. The Mutual Fund has entered into an Investment
Management Agreement (IMA) with RCAM dated May 12, 1995 and was amended on
August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996. Pursuant to this
IMA, RCAM is authorized to act as Investment Manager of Reliance Mutual Fund. The net
worth of the Asset Management Company including preference shares as on March 31,
2005 is Rs.30.13 crores.

RCAM has been registered as a portfolio manager vide SEBI Registration No.
INP000000423 and renewed effective 1st August, 2003.
RCAM has commenced these activities. It has been ensured
that key personnel of the AMC, the systems, back office, bank and securities accounts are
segregated activity wise and there exists systems to prohibit access to inside information of
various activities. As per SEBI Regulations, it will further ensure that AMC meets the
capital adequacy requirements, if any, separately for each such activity.
RCAM has been appointed as the Investment Manager of
"Reliance India Power Fund", a Venture Capital Fund registered with SEBI vide
Registration no.IN/VCF/05-06/062 dated June 16, 2005 but this activity is yet to
commence.

Mr. Amitabh Chaturvedi * Director:


Raheja Empress, Reliance Asset Management (Singapore)
Flat No. 1201/1202, Pte Limited,
12th Floor, Veer Savarkar Marg, Reliance Asset Management (Mauritius)
Opp. Siddhi Vinayak Temple, Limited, Reliance Infoinvestments
Prabhadevi, Mumbai - 400 025 Limited.
Mr. Kanu Doshi Chairman: Matrix Advisors (India)
102, Shivala, Khatau Road, Private Limited
Cuffe Parade, Mumbai - 400 005
Director:
Chartered Accountant BOB Capital Markets Limited,Peoples
Financial Services Limited
Alphaplus Investment Management
Private Limited.
Mr. Manu Chadha Director:
C-35, Malcha Marg, TRC Financial Services Ltd, Himalayan
Chankyapuri, Crest Power Ltd, GIC Housing Finance
New Delhi - 110 021 Ltd., Kotla Hydro Power Ltd., Ispat
Chartered Accountant Industries Ltd, SBI Funds Management
Pvt. Ltd.
About Reliance Mutual Fund :
Reliance Mutual Fund (RMF) has been established as a trust under the Indian
Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Settlor/Sponsor
and Reliance Capital Trustee Co. Limited (RCTCL), as the Trustee.
RMF has been registered with the Securities & Exchange Board of India
(SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name
of Reliance Capital Mutual Fund has been changed to Reliance Mutual Fund
effective 11th. March 2004 vide SEBI's letter no. IMD/PSP/4958/2004 date
11th. March 2004. Reliance Mutual Fund was formed to launch various
schemes under which units are issued to the Public with a view to contribute
to the capital market and to provide investors the opportunities to make
investments in diversified securities.

Reliance Mutual Fund (RMF) is one of India’s leading Mutual Funds, with
Average Assets Under Management (AAUM) of Rs. 88,388 Crs (AAUM for
30th Apr 09 ) and an investor base of over 71.53 Lacs. Reliance Mutual Fund,
a part of the Reliance - Anil Dhirubhai Ambani Group, is one of the fastest
growing mutual funds in the country. RMF offers investors a well-rounded
portfolio of products to meet varying investor requirements and has presence
in 118 cities across the country. Reliance Mutual Fund constantly endeavors
to launch innovative products and customer service initiatives to increase
value to investors. "Reliance Mutual Fund schemes are managed by Reliance
Capital Asset Management Limited., a subsidiary of Reliance Capital
Limited, which holds 93.37% of the paid-up capital of RCAM, the balance
paid up capital being held by minority shareholders." Reliance Capital Ltd. is
one of India’s leading and fastest growing private sector financial services
companies, and ranks among the top 3 private sector financial services and
banking companies, in terms of net worth. Reliance Capital Ltd. has interests
in asset management, life and general insurance, private equity and
proprietary investments, stock broking and other financial services
The main objectives of the Trust are:

• To carry on the activity of a Mutual Fund as may be permitted at law


and formulate and devise various collective Schemes of savings and
investments for people in India and abroad and also ensure liquidity of
investments for the Unit holders;
• To deploy Funds thus raised so as to help the Unit holders earn
reasonable returns on their savings and
• To take such steps as may be necessary from time to time to realise the
effects without any limitation.

The Sponsors
Reliance Capital Limited Corporate & Registered Office :
Reliance Capital Ltd. H Block, 1st Floor, Dhirubhai Ambani Knowledge City,
Koparkhairne, Navi Mumbai - 400 710.Tel. 022 – 30327000, Fax. 022 –
30327202

PRODUCTS AND SERVICES OF RELIANCE MF


• Equity Schemes

Reliance Equity Fund


(An open-ended diversified Equity Scheme.) The primary investment
objective of the scheme is to seek to generate capital appreciation &
provide long-term growth opportunities by investing in a portfolio
constituted of equity & equity related securities of top 100 companies by
market capitalization & of companies which are available in the
derivatives segment from time to time and the secondary objective is to
generate consistent returns by investing in debt and money market
securities.

Reliance Tax Saver (ELSS) Fund


(An Open-ended Equity Linked Savings Scheme.) The primary objective
of the scheme is to generate long-term capital appreciation from a
portfolio that is invested predominantly in equity and equity related
instruments.

Reliance Equity Opportunities Fund


(An Open-Ended Diversified Equity Scheme.) The primary investment
objective of the scheme is to seek to generate capital appreciation &
provide long-term growth opportunities by investing in a portfolio
constituted of equity securities & equity related securities and the
secondary objective is to generate consistent returns by investing in debt
and money market securities.

Reliance Vision Fund


(An Open-ended Equity Growth Scheme.) The primary investment
objective of the Scheme is to achieve long term growth of capital by
investment in equity and equity related securities through a research
based investment approach.

Reliance Growth Fund


(An Open-ended Equity Growth Scheme.) The primary investment
objective of the Scheme is to achieve long term growth of capital by
investment in equity and equity related securities through a research
based investment approach.
Reliance Index Fund
(An Open Ended Index Linked Scheme.) The Investment Objective under
the Nifty Plan is to replicate the composition of the Nifty, with a view to
endeavor to generate returns, which could approximately be the same as
that of Nifty. The Investment Objective under the Sensex plan is to
replicate the composition of the Sensex, with a view to endeavor to
generate returns, which could approximately be the same as that of
Sensex.
Reliance NRI Equity Fund
(An open-ended Diversified Equity Scheme.) The Primary investment
objective of the scheme is to generate optimal returns by investing in
equity or equity related instruments primarily drawn from the Companies
in the BSE 200 Index

• Debt Schemes.:

Reliance Monthly Income Plan


(An Open Ended Fund. Monthly Income is not assured & is subject to the
availability of distributable surplus ) The Primary investment objective of
the Scheme is to generate regular income in order to make regular
dividend payments to unitholders and the secondary objective is growth
of capital.Primarily the investment shall be made in debt and money
market securities (i.e. 80%) with a small exposure (i.e. upto 20%) in
equity.

Reliance Gilt Securities Fund - Short Term Gilt Plan & Long Term
Gilt Plan
Open-ended Government Securities Scheme) The primary objective of
the Scheme is to generate Optimal credit risk-free returns by investing in
a portfolio of securities issued and guaranteed by the central Government
and State Government

Reliance Income Fund


(An Open-ended Income Scheme) The primary objective of the scheme
is to generate optimal returns consistent with moderate levels of risk.
This income may be complemented by capital appreciation of the
portfolio. Accordingly, investments shall predominantly be made in Debt
& Money Instruments.

Reliance Medium Term Fund


(An Open End Income Scheme with no assured returns.) The primary
investment objective of the Scheme is to generate regular

income in order to make regular dividend payments to unit holders and


the secondary objective is growth of capital

Reliance Short Term Fund


(An Open End Income Scheme) The primary investment objective of the
scheme is to generate stable returns for investors with a short investment
horizon by investing in Fixed Income Securities of short term maturity.

Reliance Liquid Fund


(Open-ended Liquid Scheme). The primary investment objective of the
Scheme is to generate optimal returns consistent with moderate levels of
risk and high liquidity. Accordingly, investments shall predominantly be
made in Debt and Money Market Instruments.
Reliance Fixed Term Scheme
(Close-ended Income Scheme) The primary objective of the Scheme is to
seek to achieve regular returns / growth of capital by investing in a
portfolio of fixed income securities normally maturing in line with the
time profile of the plan with the objective of limiting interest rate
volatility.

Reliance Floating Rate Fund


(An Open End Income Scheme) The primary objective of the scheme is
to generate regular income through investment in a portfolio comprising
substantially of Floating Rate Debt Securities (including floating rate
securitized debt and Money Market Instruments and Fixed Rate Debt
Instruments swapped for floating rate returns). The

scheme shall also invest in Fixed rate debt Securities (including fixed
rate securitized debt, Money Market Instruments and Floating Rate Debt
Instruments swapped for fixed returns

Reliance NRI Income Fund


(An Open-ended Income scheme) The primary investment objective of
the Scheme is to generate optimal returns consistent with moderate levels
of risks. This income may be complimented by capital appreciation of the
portfolio. Accordingly, investments shall predominantly be made in debt
Instruments.

Reliance Fixed Maturity Fund - Series I


(A Close Ended Income Scheme)
The primary investment objective of the Scheme is to seek to achieve
regular returns / growth of capital by investing in a portfolio of fixed
income securities normally maturing in line with the time profile of the
Plan with the objective of limiting interest rate volatility.

Reliance Fixed Maturity Fund - Series II


(A closed ended Income Scheme) The primary investment objective of
the Scheme is to seek to achieve growth of capital by investing in a
portfolio of fixed income securities normally maturing in line with the
time profile of the respective plans.

Reliance Liquidity Fund


(An Open - ended Liquid Scheme) The investment objective of the
Scheme is to generate optimal returns consistent with moderate levels of
risk and high liquidity. Accordingly, investments shall predominantly be
made in Debt and Money Market Instruments.

Reliance Regular Savings Fund


(An Open - ended scheme)
The Investment Objectives:
Debt Option: The primary investment objective of this plan is to
generate optimal returns consistent with moderate level of risk. This
income may be complemented by capital appreciation of the portfolio.
Accordingly investments shall predominantly be made in Debt & Money
Market Instruments.
Equity Option: The primary investment objective is to seek capital
appreciation and or consistent returns by actively investing in equity /
equity related securities.
Hybrid Option: The primary investment objective is to generate
consistent return by investing a major portion in debt & money market
securities and a small portion in equity & equity related instruments.

• Sector Specific Schemes

Sector Funds are specialty funds that invest in stocks falling into a certain
sector of the economy. Here the portfolio is dispersed or spread across the
stocks in that particular sector. This type of scheme is ideal for investors
who have already made up their mind to confine risk and return to a
particular sector.

Reliance Banking Fund


Reliance Mutual Fund has an Open-Ended Banking Sector Scheme which
has the primary investment objective to generate continuous returns by
actively investing in equity / equity related or fixed income securities of
banks.

Reliance Diversified Power Sector Fund


Reliance Diversified Power Sector Scheme is an Open-ended Power
Sector Scheme.
The primary investment objective of the Scheme is to seek to generate
consistent returns by actively investing in equity / equity related or fixed
income securities of Power and other associated companies.

Reliance Pharma Fund


Reliance Pharma Fund is an Open-ended Pharma Sector Scheme.
The primary investment objective of the Scheme is to generate consistent
returns by investing in equity / equity related or fixed income securities of
Pharma and other associated companies.
Reliance Media & Entertainment Fund
Reliance Media & Entertainment Fund is an Open-ended Media &
Entertainment sector scheme. The The primary investment objective of
the Scheme is to generate consistent returns by investing in equity / equity
related or fixed income securities of media & entertainment and other
associated companies

WHY RELIANCE MUTUAL FUND ?

• Reliance Mutual Fund ,a part of the –Anil Dhirubhai Ambani Group(R-


ADAG) is one of the fastest growing mutual fund company in the
country.
• Reliance mutual fund offer investors a well –rounded portfolio of
products to meet varying investor requirements.
• Reliance mutual fund has a presence over 80 cities across the country.
• Reliance mutual fund investor base of over 2 million and manages
assets over Rs.88388 crore as on 30 April
2009,(source:www.amfiindia.com)
• A fund from Reliance mutual fund ,an AMC with a established track
record of consistent return.
• Investor –friendly personal and technological support.
• Strong and consistent fund management team.
CHAPTER V

SWOT Analysis

STRENGTHS

• Reliance Mutual Fund ,a part of the –Anil Dhirubhai Ambani


Group(R-ADAG) is one of the fastest growing mutual fund
company in the country.
• Reliance mutual fund offer investors a well –rounded portfolio of
products to meet varying investor requirements.
• Reliance mutual fund has a presence over 118 cities across the
country,with investor base over 71.53 lacs.
• Reliance mutual fund investor base of over 2 million and manages
assets over Rs.88388 crore as on April
30,2009(source:www.amfiindia.com)
• A fund from Reliance mutual fund ,an AMC with a established
track record of consistent return.
• Strong and consistent fund management team.
• Investor –friendly personal and technological support.

Ensures better costumer services, conveniences ,communication by efficient


network.
• Quality product & services – High quality standard maintained.
• Brand Name – ‘Reliance Mutual Fund ’ is popular brand name
among customers.
• Good image between customers.
.

WEAKNESS

• Less existence in rural areas


• less expenditure on advertising and promotional schemes

OPPORTUNITIES
• Jodhpur is a big industrial area so there is a huge opportunities.
• Reliance mutual fund has a very good quality products &schemes
comparison to other competitor.
• Reliance is first company which launched Equity fund with hedging
feature which aim to minimize risk..
• Good perception among the customer.
THREATS

• Less schemes provided by Reliance mutual fund comparison to


competitor.
• Lot of competitor in market.
• Lot of schemes are provided by competitors.
• Share market may be go down in future.
• The Mutual Fund is not guaranteeing or assuring any dividend/ bonus.

CHAPTER VI
Analysis and Interpretation of Data

Knowing the awareness and perception of the customers is very important


in any industry. this provide insight into the customer behavior and his
expectation from the industry players. a proper understanding of the
awareness and perception would definitely benefit the players. this survey
attempt to know the mutual fund investor better. it examines some
interesting choices of the retail investor including the reasons behind
investing in mutual funds and the risk tolerance levels of the investors. the
investor knowledge about the mutual funds and what according to him are
the best mutual funds is also analyzed. this udaipur city survey was
conducted to know the retail investor awareness and perception about
mutual funds. It is hoped that this survey in udaipur city would go a long
way in benefiting for reliance mutual fund.
The total sample for the study was 100 across Jodhpur city.
I. AN OVERVIEW :
This section shows an simple overview of respondents like their age
,gender, income profile, saving habits and qualification

(a) Age-profile:

Table No. I(a) showing age profile of respondents:


S. No Age No .of Percentage
respondents
1. 20-25 19 19%
2. 25-40 40 40%
3. 40-55 21 21%
4. 55-60 15 15%
5. 60-Above 5 5%
Total 100 100%

Age-profile
60-Above 20-25
5% 19%
55-60
15%
20-25
25-40
40-55
55-60
40-55
21% 60-Above
25-40
40%

INTERPRETATION :

In this survey I found the maximum number of respondents belongs to the


age group of 25-40 years, followed by 40-55 years of age category.

(b) Gender-wise:

Table No. I(b) showing gender wise profile of respondents:


S. No Gender No. of Percentage
respondents
1. Male 92 92%
2. Female 8 8%
Total 100 100%

Gender-wise overview

Female
8%

Male
Female

Male
92%

INTERPRETATION :

Table No.I(b) represents the gender ratio of the respondents in this


survey.92%of the covered respondents were male and remaining 8% were
female

(c)Income Profile:

Table No. I(c) showing income wise profile of respondents:


S. No Income No. of Percentage
respondents
1. Less then 1.0 34 17%
Lakh
2. 1.0-2.0 Lakh 38 38%
3. 2.0-3.0 Lakh 30 30%
4. 3.0-5.0 Lakh 6 6%
5. More then 4 4%
5.0 Lakh
6. No response 5 5%
Total 100 100%
Income Profile

40% 38%
35% 30% Less then 1.0 Lakh
30%
1.0-2.0 Lakh
25%
17% 2.0-3.0 Lakh
20%
3.0-5.0 Lakh
15%
More then 5.0 Lakh
10% 6% 5%
4% No response
5%
0%
No. of respondents

INTERPRETATION :

In this survey I found the break up of the respondents. Around 38%of the
respondents have an income between of Rs.1.0-2.0 Lakhs per annum and
30% of respondents in between 2.0-3.0 Lakhs .it display the income
profile of respondents.

(d) Saving Habits :


.
Table No. I(d) showing saving habits profile of respondents:
S. No Savings No. of Percentage
respondents
1. Up to Rs. 31 31%
2000
2. Rs.2001- 33 33%
5000
3. Rs.5001- 16 16%
10000
4. Rs.10001- 3 3%
20000
5. Above 1 1%
Rs.20001
6. No Response 16 16%
Total 100 100%

Saving Habits of respondents


Rs.10001-
20000
No response
3%
16% up to Rs.2000
aboveRs.20001 31% up to Rs.2000
1% Rs. 2001-5000
Rs.5001-10000
Rs.10001-20000
aboveRs.20001
No response
Rs.5001-10000 Rs. 2001-5000
16% 33%

INTERPRETATION :

In this survey around 33% of the respondents reported to have a saving in


the range of Rs.2001-5000 per month .only 1% of the respondents
reported having in higher bracket i.e more then 20001 per month.

(e)Qualification :

Table No. I(e) showing Qualification profile of respondents:


S.No Qualification No. of Percentag
respondents e
1. Undergraduates 6 6%
2. Graduates 39 39%
3. Postgraduates 40 40%
4. Others 1 1%
5. No response 14 14%
Total 100 100%
39% 40%

40% Undergraduates
Graduates
30% 14%
Postgraduates
6%
Others
20%
No response
10% 1%
0%
No. of respondents

INTERPRETATION :

The surveyed group are well educated group with 40%being post
graduates and 39%being graduates. around 6% of the samples collected
were undergraduates.

II. KNOWLEDGE OF MUTUAL FUNDS :


In the survey ,I attempted to understand from the investors their
knowledge of Mutual fund.

(a)Knowledge of Mutual Fund:

Table No. II(a) showing knowledge of mutual fund of respondents:


S.n No Knowledge No. of Percentage
of Mutual respondents
Funds
1. Very good 4 4
2. Good 9 9
3. Average 19 19
4. Poor 64 64
5. No response 4 4
Total 100 100%
Knowledge of Mutual Fund

Poor
Average
64%
19%
Very good
Good
Other Average
68% Poor
No response
Good
9%
No response
Very good 4%
4%

INTERPRETATION :

In this survey it was found that 64% of the respondents don’t’ know or
their knowledge is very poor about Mutual funds. they ,while 4%
respondents rated their understanding as very good about Mutual funds. it
shows knowledge of Mutual funds are very low..

(b) Knowledge related to share market:

Table No. II(b) showing knowledge related to share market of


respondents:
S. No Knowledge No. of Percentage
related to respondents
share market
1. Yes 32 32%
2. No 64 64%
3. Can’t say 4 4%
Total 100 100%
Knowledge related to share market:

Can't say
4%
Yes
32%

Yes
No
Can't say
No
64%

INTERPRETATION :

It was found that 64% of the respondents don’t know that the Mutual fund
is related to share market. they also don’t know that Mutual funds returns
is affected by the fluctuation in share market.

III. Investment objective/decisions :


This section of survey was aimed at understanding the main reason behind
the investment decision made by an individual. I tried to catch the factor
that contribute to making of an investment portfolio off an individual.

(a)Investment objective:

S. No Investment No. of Percentage


objective respondents
1. Capital Gain 21 21%
2. Generate 6 6%
Regular
return
3. Secure 59 59%
Future
4. Tax benefits 14 14%
Total 100 100%

Investment Objective of Investor

capital gain
tax benefits 21%
14%
generate capital gain
reguar return generate reguar return
6% secure future
secure future tax benefits
59%

INTERPRETATION :

Total number of 100 responses were generated for this question and
multiple response were sought for the various investment objectives. the
analysis brings out the fact that investor were more concerned about the
secure future(59%) and capital gains(21%), and after that they considered
tax benefits(14%) and regular return(6%) as their main investment
objectives.

(b)Decision affecting Factors:

S. No Decision No. of Percentage


affecting respondents
Factors
1. Economic 19 19%
scenario
2. Company 44 44%
image
3. Fund 21 21%
performance
4. Fund 2 2%
manager
image
5. Tax incentive 14 14%
Total 100 100%

DECISION AFFECTING FACTORS

100 88
80
Economic scenario
60 Company image
38 42 Fund performance
40
28 Fund manager image
20 Tax incentive
4
0
No. of Respondents

INTERPRETATION :
There are certain overall factors that tend to affect the investment decision
decision of the investor, such as economic scenario. I tried to know the
respondents opinion on these macro factors that further tend to affect their
investment decisions.
This survey showed that company image acts as the determining
factor for their investment with 44%.the second most important factor was
fund performance(21%) and economic scenario(19%).

(c)Information sources regarding Mutual Funds:

S. No Information No. of Percentage


sources respondents
1. Print media 29 29%
2. Electronic 21 21%
media
3. Friends/Relativ 6 6%
e
4. Financial 19 19%
advisors
5. Personal 4 4%
analysis
6. Agents 21 21%
Total 100 100%
Information sources regarding Mutual Funds

Print media
21% 29% Electronic media
4% Friends/Relative
Financial advisors
19% Personal analysis
6% 21%
Agents

INTERPRETATION :
In this survey I asked from the respondents about the kind of media that
affect their investment decision.29% of the respondents said that the print
media is the major influencer in making their investment decisions,
electronic media(21%) and agents(21%) were the second major influencer
in investment decision making.

(d)Priority of reason for investment:

S. No Priority for No. of Percentage


investment respondents
1. Saving for 51 51%
future
2. Tax incentive 14 14%
3. Returns 23 23%
4. Future 7 7%
outlook
5. Brand value 2 2%
6. Risk factors 3 3%
Total 100 100%
Priority of reason for investment
Brand value
2%
Risk factors
Future outlook 3%
7% Saving for future
51% Saving for future
Returns Tax incentive
23% Returns
Future outlook
Brand value

Tax incentive
Risk factors
14%

INTERPRETATION:

In this survey I found that saving for the future was the foremost
important criteria for investment in the minds of investors (51%),while
23%respondents said that they considered the returns before making
investment decisions.

IV. Risk-Return profile :


In my study I also tried to understand the risk and return matrix of an
individual investor. this was done in order to obtain information
Information on the relationship between the kind of funds an individual
investor opts to invest in and the relative expectation he has on the return
front.

(a)Investment Avenues:
S. No Investment No. of Percentage
Avenues respondents
1. Post office 12 12%
schemes
2. Insurance 4 4%
3. Banks 66 66%
4. Share market 3 3%
5. Mutual funds 7 7%
6. Govt. 8 8%
securities
Total 100 100%
Investment Avenues
Insurance
Mutual funds Govt. Post office 4%
7% securities schemes
8% 12% Post office schemes
Insurance
Banks
Share market Share market
3%
Mutual funds
Govt. securities

Banks
66%

INTERPRETATION:
The risk return matrix of an individual is the key factor in framing his
investment portfolio. I asked the respondents to select the investment
avenues they would prefer to keep their investment portfolio. 66% of
investor preferred to have banks savings as one of the investment avenue.,
while 12% of the investor said that they would certainly would like to
have post office schemes as one of their preferred investment avenue.
(b)Return expectation from Mutual funds:

S. No Return No. of Percentage


expectation respondents
from Mutual
funds
1. 5%-10% 5 5%
2. 11%-15% 24 24%
3. 16%-20% 31 31%
4. More then 16 16%
20%
5. Can’t say 24 24%
Total 100 100%
Return expectation from Mutual funds

16% -20%
31% Other Can’t say
40% 24%
5%-10%

11%-15%

16%-20%

More then 20%

11% -15% Can’t say


24% 5% -10% More then 20%
5% 16%

INTERPRETATION:

In this survey when I came to return expected ,I found that 31% of the
investor are expecting a return in range of 16%-20%,while 24%of the investor
are expecting 11%-15% rate of return but 24% of investor can’t said about
return expectation.

(c) Investment pattern preferred in Mutual fund by investor :

S. Investment No. of Percentage


No pattern respondent
preferred s
in Mutual
fund
1. Growth 41 41%
schemes
2. Balanced 11 11%
schemes
3. ELSS 18 18%
4. Sector 6 6%
specific
schemes
5. Liquid 7 7%
schemes
6. Can’t say 17 17%
Total 100 100%
Investment pattern preferred in Mutual fund by investor

50%
Growth schemes
41%
40% Balanced schemes

30% ELSS

Sector specific
20% 18% 17% schemes
Liquid schemes
11%
10% 6% 7% Can’t say

0%
No. of respondents

INTERPRETATION:

The type of schemes selected for investment depends largely on the risk
return matrix of an individual and the time horizon of his investment.
My findings demonstrate that 41% of investors prefer
to invest in growth schemes,18% of investor in ELSS schemes.

(d) Return in diversified schemes in Mutual fund :

S. No Return in No. of Percentage


diversified respondents
schemes in
Mutual fund
1. Yes 23 23%
2. No 77 77%
Total 100 100%
Return in diversified schemes in Mutual fund

Yes
Yes
23%

No No
77%

INTERPRETATION:

In this survey I tried to know the knowledge of investors about the return
on diversified schemes .I found that 77%of surveyed people don’t know
that the return on diversified mutual fund schemes is more then other
schemes. so, it shows that vary lake of awareness about mutual funds.

(e) Sources of product information :

S. No Sources of No. of Percentage


product respondents
information
1. Company 39 39%
brochures
2. Company 3 3%
websites
3. Investment 14 14%
advisor
4. Newspaper 37 37%
5. Friends and 7 7%
relatives
Total 100 100%
Sources of product information

40% 39%
37%
35%
30%
Company brochures
25% Company websites
20% Investment advisor
15% 14% Newspaper
10% Friends and relatives
7%
5% 3%
0%
No. of respondents

INTERPRETATION:

This chart represents the different sources of product information, through


which investor generally tend to know regarding the mutual fund’s new
schemes and products.39% of the respondents said that they receive the
product information from the company brochures and 37% respondents
said that they get it from newspaper.

CHAPTER VII
FINDINGS

• Out of 100 people being surveyed to know the awareness and


perception among people about mutual funds, I found that 14% knew
about mutual funds who mostly invest in these funds while 86% where
not at all aware about the product and its investments
• Some People were less interested in knowing about the product.
• They have the impression that these funds are not safe, as the money is
locked in for a particular period, which is known as the lock in period.
• Mutual funds, in a country like India is in its growth stage and it would
take some time to enter into the maturity stage.
• People investing into mutual funds basically invest at the financial
year-end.
• They invest into these funds mostly for tax saving purposes other than
investment or return purposes.

CHAPTER VIII

RECOMMENDATIONS
&OBJECTIVES

• There should be more awareness made about the Reliance Mutual Fund
and their services by giving more advertisement.

• The Reliance Mutual Fund should go for tie-ups with the corporate to
invest in RMF.
• Reliance Mutual Fund should organize some events to build its Brand
Image in the minds of the people.

• As per customer’s point of view, they feel that Reliance Mutual Fund
should open more number of branches for the convenience of people.

OBJECTIVES

1. The main motive of my job the Reserach is to brand building of Reliance


Mutual Fund and creating awareness & sales, that is it’s an brand building
& sales orientated.
2. The objective of the Reliance MF is to create awareness of the products
among the general public and to know the perception of the general public
regarding the Mutual Funds and try to fulfill their requirement.
3. Analyzing the market survey and thereby finding out the investment
pattern of the customer.

CHAPTER IX

CONCLUSION
AS been analyzed people are very rarely aware of mutual funds as people
were not properly educated about the policies but when made aware they
wanted to get more information about the funds by this we can say that
mutual fund is in its infant stage today but it will reach its growth stage
within no time.
Mutual fund has been compared to Unit linked polices people are more
aware of ULIP than Mutual fund which takes more customer to the
insurance sector but slowly as people are getting more aware of the funds
they will surely start investing in these funds as some of the mutual fund
companies have already started giving more than 30% returns which is
really a huge amount being 6% minimum and 10% maximum guidelines
given a company.
Mutual funds in this competitive world is very helpful for the people who
are interested into investments as this particular fund can take less
investment but give u hefty.

CHAPTER XI
Questionnaire

Age profile :

Gender :

Income profile :

Saving habits :

Qualification :

Q1. Do you know about the Mutual Funds ?


(a) Very good (b)Good
(c)Average (d)Poor
(e)No response

Q2. What is your objective /motive behind investment ?

(a)Capital gain (b)Generate regular


(c)Secure future (d)Tax benefits

Q3. Where do you generally invest/save ?

(a)Post office schemes


(b)Insurance
(c)Banks
(d)Share market
(e)Mutual funds
(f)Govt. securities

Q4. How do you prioritize the reason for investment ?


[rank from 1-5,1 being highest priority]

Saving for future __________


Tax incentives __________
Returns __________
Future outlook __________
Brand value __________
Risk factor __________

Q5. How did you come to know about mutual fund ?

(a)Print media
(b)Electronic media
(c)Friend/relative
(d)Financial advisor/C.A
(c)Personal analysis
(f)Agents

Q6. What factors affect your decision for investment in Mutual Fund ?

(a)Economic scenario
(b)Company image
(c)Fund performance
(d)Fund manager image
(e)Tax incentive

Q7. How much return you expect from Mutual Fund ?

(a)5%-10%
(b)11% -15%
(c)16%-20%
(d)more than 20%
(e)can’t say

Q8. What kind of investment pattern you prefer in Mutual Fund ?

(a)Growth schemes
(b)Balanced schemes
(c)ELSS
(d)Sector specific schemes
(e)Income schemes
(f)Liquid schemes

Q9. What are the sources of information gathering for you regarding mutual
fund?

(a)Company brochures
(b)Company websites
(c)Investment advisor
(d)Newspaper
(e)Friends and relatives

Q10. Are you aware that by investing in diversified investment avenues the
average rate of return would considerable go up ?

(a)Yes (b)No

Q11. Do you know that mutual fund is related to share market?

(a)yes (b)no
(c)can’t say

Bibliography
WEB SITES VISITED:

 www.amfiindia.com
 www.mutualfundsindia.com
 www.sebi.gov.in
 www.reliancemutual.com
 www.yahoo.com
 www.google.com
 www.rbi.org.in

BOOK REFERRED:

 Marketing management by Phillip Kotler

Think Bigger ,Think Better